Note 9. Income Taxes

The components of income tax expense are as follows for the years ended December 31, 2019 and 2018:


	2019		2018
(dollars in thousands)
Current income tax (benefit) expense:
Federal	$	—	$	(1,191)
State		119		57

Total current tax expense (benefit)		119		(1,134)

Deferred income tax expense:
Federal		291		1,228
State		42		36

Total deferred tax expense		333		1,264

Total Income tax expense	$	452	$	130

A reconciliation of income tax expense computed at the statutory rate of 21% at December 31, 2019 and December 31, 2018 to the actual income tax expense for the years ended December 31, 2019 and 2018 is as follows:


	2019		2018
(dollars in thousands)
Income tax expense at federal statutory rate	$	431	$	360
(Decrease) increase resulting from:
Tax-exempt income		(72)		(200)
Bank owned life insurance		(34)		(101)
State income taxes, net of Federal income tax benefit		127		74
Other		—		(3)
Total income tax expense	$	452	$	130

Deferred tax assets and liabilities resulting from the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at December 31, 2019 and 2018 are as follows:


	2019		2018
(dollars in thousands)
Deferred income tax benefits:
Accrued deferred compensation	$	87	$	78
Allowance for credit losses		243		347
Net operating loss carryforward credits		153		345
Accumulated depreciation		(13)		4
Reserve for unfunded commitments		10		10
Accounting standard 310-20		(103)		(76)
Right of use asset		(205)		—
Lease liability		205		—
Other temporary differences		—		7
Accumulated securities premium accretion		215		210
Net unrealized depreciation on investment securities available for sale		80		467

Net deferred income tax benefits	$	672	$	1,392

Management has determined that no valuation allowance is required as it believes it is more likely than not that all of the deferred tax assets will be fully realizable in the future. At December 31, 2019 and 2018, management believes there are no uncertain tax positions under ASC Topic 740 Income Taxes. We file income tax returns in the US federal jurisdictions. We are no longer subject to US federal income tax examinations by tax authorities for years before 2016.

Income tax expense was $0.45 million and $0.13 million at December 2019 and 2018, respectively.